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Jain Networks drops CA licence plan

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Jain Networks drops CA licence plan

Jain Networks has dropped plans to become a licensee for certifying digital signatures and instead decided to focus on bulk bandwidth sale to corporates and other internet service providers. The network had earlier decided to apply for the licence for certifying digital signatures, to become a Certifying Authority.

The company has identified bandwidth reselling as one of the future growth engines. Jain Networks is evaluating three options for delivery of bandwidth - creating a radio network like GSM, copper-enabling infrastructure and taking fibre-optic leased lines from companies like Spectranet and Reliance.

The absence of a proper revenue stream and an upfront investment of Rs 10 crore were the main reason for scrapping the CA plans.

For the ISP business, Jain Networks is planning to focus more corporate subscribers, adding currently, it is operating in Delhi and Meerut with plans of a national roll-out in the near future.

The company also denied any internal cash crunch and said in view of its cash flows from the content business and telecom infrastructure business, it would be fulfilling its repayment commitments to IDBI.


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